THE MACHINE TOOL INDUSTRY USES HYDRAULICS TO PROVIDE THE ENERGY AND FORCE TO PERFORM THE VARIOUS METALWORKING OPERATIONS. HYDRAULIC SYSTEMS USE MANY DIFFERENT TYPES OF HYDRAULIC COMPONENTS, VARIANCE PLACEMENT PUMPS, CARTRIDGE VALVES, SERVOS, MICRO-PROCESSORS AND EVEN HYDRAULIC ROBOTS. A TYPICAL LIST WOULD INCLUDE 10 IMPORTANT AREAS OF INTEREST FOR OPTIMUM SYSTEM OPERATION: VALVE ANALYSIS AND FLUID SELECTION; STORAGE AND HANDLING OF FLUIDS; CONTAMINATION CONTROL; HOW ELEVATED TEMPERATURES AFFECT OPERATIONS; CONTAMINANTS INTRODUCED DURING SYSTEM REPAIR; LEARNING FROM YOUR BREAKDOWNS; LEAKAGE CONTROL; SYSTEM DESIGN CONSIDERATIONS; RECLAMATION PROCEDURES, AND FLUID MAINTENANCE PROCEDURES. THIS PAPER IS AN UPDATE OF PREVIOUS PAPER MSR80-09.